Saving Money When There’s Not Much to Save

Many Americans struggle financially, living paycheck to paycheck, hoping they have enough to cover all their bills at the end of the month. Life is easier if you have a cash cushion or an emergency fund, but how do you save when there is not much fat in your budget?

First, you need to find out where your money is going. Start by tracking all your spending for 30 days. Everything, even a pack of gum, should be noted using any tracking method you prefer – SyncUp, a notebook, your smartphone, a spreadsheet, whatever works best for you. Then categorize each expense. Start with these essentials:

  • Rent/mortgage

  • Utilities

  • Food

  • Transportation to get to your job

  • Healthcare – prescriptions and co-pays

These five are priorities that must be paid each month. Everything else, like clothing, cosmetics, gym membership, etc., are areas where you can cut back and save a little. Here are a few other saving suggestions:

Entertainment – Look for low-cost ways to have fun.

  • If you have a streaming service, discontinue it for a few months. For example, a service that costs $25.00 per month means you’re spending $300 per year – that’s a month’s worth of groceries.

  • Get a library card to check out movies and video games instead of renting them.

  • Listen to podcasts. There are over a million to choose from on all subjects.

  • Learn a new language or start a new hobby. Here again, the library can be your friend by providing free resources.

Food – Try to spend no more than 11% of your take-home pay on food.

  • Shop for generic store brands instead of name-brand items. Many generic versions can be up to 60% cheaper.

  • Use coupons and download your grocery store’s app for more deals. Consider using the curbside pickup option instead of shopping in-store to help you better plan ahead and stick to a list and budget.

  • Buy fruit and vegetables in their natural form. Washed and pre-cut vegetables can be twice as expensive. Give meal-prep a try, as packaged and frozen food is also more expensive.

  • Buy only what you know you can eat in a week or two to avoid throwing away food. Use free meal-planning apps to help you shop.

  • Make at least 75% your own meals instead of ordering from restaurants, and when you do, always pick up your meals when possible to avoid paying delivery fees and tips.

Energy bills – Changing habits can save you big money.

  • Use an air fryer, slow cooker, toaster oven, or other small appliances instead of the oven.

  • Wait until the dishwasher when it’s full before using it and turn off the heated dry setting.

  • Utilize power strips so you can turn off or unplug unused appliances to avoid phantom loads.

  • Switch out incandescent light bulbs for LED bulbs, and turn off lights when you leave a room.

Stop Paying Fees – Missing payment due date comes with a heavy price.

  • To avoid late fees and protect your credit score, set up automatic payments on your bills and credit cards to pay at least the minimum payment by the due date.

  • If you can’t pay your bill in full each month, contact your biller to get on a payment plan or change your due date.

  • If your credit card has a high interest rate, look for one with a lower interest rate and transfer any existing balance. Check out Fort Worth City Credit Union’s Fort Worth Proud VISA credit card rates.

  • Look at your accounts and see if you’re paying fees - if you are, figure out why and if there’s a way to avoid it. If not, research other options.

By cutting costs even just a little and putting those savings into an account, you will be able to pay bills with less worry and maybe even have a little left over for something special.

Sarah Green